Oil Company Riches at Your Expense

While the average person on the street is getting gouged by high prices for gasoline, petrol if you will, the top oil companies are raking in massive profits. According to one article:

This year, pretax profits for ConocoPhillips, Chevron, ExxonMobil, Hess Corporation, and Devon Energy are expected to increase by 42.7, 38.5, 28.6, 56.9 and 44.6 percent respectively, as compared to last year.

Kate Aronoff / TNR / March 10, 2022

In the midst of these huge profits, a March 7, 2022 report points out how many oil companies have negative tax liability!

The tax credits and rebates received by the Big Five from the US federal, state and local governments exceed their tax liabilities, leading to a transfer of $1.95 billion from the US federal and state governments to the Big Five.

Joseph Baines and Sandy Hager / Common Wealth / The Case for a Windfall Tax in the United States / March 7, 2022

Congressman Ro Khanna of California has introduced legislation, BIG OIL WINDFALL PROFITS TAX ACT to change that.

Going back further, we find an EESI report, FOSSIL FUEL SUBSIDIES: A CLOSER LOOK AT TAX BREAKS AND SOCIETAL COSTS that includes this:

Conservative estimates put U.S. direct subsidies to the fossil fuel industry at roughly $20 billion per year; with 20 percent currently allocated to coal and 80 percent to natural gas and crude oil. European Union subsidies are estimated to total 55 billion euros annually.

Environmental and Energy Study Institute / July 29, 2019

And then we read other news stories like this one, SHELL BOSS BAGS 26% LEAP IN ANNUAL PAY PACKAGE AFTER COVID OIL PRICE RECOVERY with these further details:

Ben van Beurden took home 57 times more than the median Shell worker in 2021 but will be facing pressure to temper awards for the current year as surging oil and gas prices bring misery to households and business alike.

James Sillars / Sky News / March 10, 2022

These are all things to think about the next time you are paying dearly at the gas pump.

Bob